FedEx to ink USD450-million Asian deal on Clark move
FedEx, reportedly will sign on June 2 a USD450-million deal to formally relocate its Asia-Pacific business hub to Clark Field, Pampanga from the Subic Bay Freeport in Zambales.
“The deal will be concluded when FedEx executives come to the country this Wednesday. We’re just finalizing the extent of the lot they will lease,” an official said, on condition of anonymity.
The official also said China was still hoping to snatch the FedEx deal from the Philippines.
FedEx’s contract with Subic Bay Metropolitan Area (SBMA) lapses in 2007, and the Tennessee-based firm reportedly plans to move to Guangzhou.
It had reportedly signed a letter of intent with the Guangzhou Airport Authority to relocate its Asia-Pacific business operations in Guangzhou’s new 18-billion yuan Baiyun Airport.
The Philippines, however, reportedly edged out China because of its cheap but skilled labor.
Clark International Airport Corp. (CIAC) president and chief executive officer Adelberto Yap also said in an earlier interview that FedEx preferred dealing with the Philippine government.
Sources said FedEx decided against China because of its inconsistent implementation of regulations. FedEx reportedly did not want to deal with many state restrictions.
In terms of facility offerings, the Diosdado Macapagal International Airport (DMIA) at Clark has two runways. FedEx can start operations immediately in Clark, unlike in China where a similar runway will still be built at the new Baiyun Airport.
“In fact, some Chinese transport officials are here because they want to match our bid. But there’s no turning back for FedEx. Time is running out for them. They have to start construction of the hub in October 2005,” the source said.
FedEx’s future operations in Clark will include the development of 42 to 50 hectares of DMIA. Plans are under way to develop DMIA into a fully operational international airport.
Transportation and Communications Secretary Leandro Mendoza said in an earlier interview the government aimed to develop DMIA as a hub for maintenance service providers.
Among those invited to transfer to DMIA was Lufthansa Technik, an international provider of technical services for commercial aircraft including maintenance, overhaul, special inspections, developmental work, and logistics.
FedEx’s business operations in the region have been based at the Subic Freeport since 1995. For eight years, it connected to about 19 key Asian cities like Penang, Singapore, Kuala Lumpur, Manila and East Timor for overnight delivery of cargo from Subic.
